Suppose That in 2012,all Prices in the Economy Double and That

question 99

Multiple Choice

Suppose that in 2012,all prices in the economy double and that all wages and salaries have also doubled.In 2012 you

• A) are worse off than you were in 2011 as you can no longer afford to buy as many goods and services.
• B) are better off than you were in 2011 as your salary is higher than it was in 2011 and you can now buy more goods and services.
• C) are no better off or worse off than you were in 2011 as the purchasing power of your salary has remained the same.
• D) cannot determine whether you are better off or worse off than you were in 2011, because the purchasing power of your salary cannot be determined.

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Definitions:

Responsiveness

The quality of reacting quickly and positively to stimuli or changes, often used in contexts ranging from individual behaviors to system performance.

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, often measured as an indicator of cardiovascular health.

Arteriosclerosis

A condition characterized by the thickening, hardening, and loss of elasticity of the walls of arteries.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to various parts of the body.